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GST · Updated for tax year 2026-27

GST Composition Scheme Calculator

Under the composition scheme of Section 10, CGST Act, GST is a flat percentage of turnover: 1% for traders and manufacturers, 5% for restaurants and 6% for service providers, split equally into CGST and SGST. Goods businesses with turnover up to ₹1.5 crore (₹75 lakh in special category states) and service providers up to ₹50 lakh can opt in.

Enter your details

Values you enterComputed values
State

Result

Composition rate1%CGST₹10,000SGST₹10,000Total tax₹20,000

Eligible — the limit for your business is ₹1.5 crore a year.

Disclaimer: Computed to the best of our knowledge, as per the law — including the section changes under the Income-tax Act, 2025 — in force on the date this website was last deployed (28 Sep 2026). Results are estimates for guidance only and are not tax, legal or investment advice. Please verify with the Act, rules and notifications, or a qualified professional, before relying on them. Rates and limits last reviewed on 28 Sep 2026.

How to use the GST Composition Scheme Calculator

  1. 1

    Choose your type of business.

  2. 2

    Enter the turnover for the quarter (or the year) you want to calculate tax for.

  3. 3

    Enter your annual turnover and state type to check whether you are eligible.

  4. 4

    The calculator shows the tax, split into CGST and SGST, payable through CMP-08.

Composition tax formula

Tax = Turnover in the state × Composition rate

Traders & manufacturers: 1% (0.5% CGST + 0.5% SGST) — traders pay on taxable supplies only

Restaurants (not serving alcohol): 5% (2.5% + 2.5%)

Service providers and mixed suppliers: 6% (3% + 3%)

Composition taxpayers pay quarterly through form CMP-08 and file an annual return in GSTR-4. They cannot collect GST from customers, cannot claim input tax credit and cannot make inter-state sales of goods.

Worked example

  • A kirana trader with ₹20 lakh of taxable sales in a quarter pays 1% = ₹20,000 (₹10,000 CGST + ₹10,000 SGST).
  • A restaurant with the same turnover pays 5% = ₹1,00,000.

Is composition right for you?

Composition suits small businesses that sell mostly to consumers, who cannot use input tax credit anyway. It is usually a poor fit if you buy a lot with GST (you lose that credit) or sell to GST-registered businesses (they cannot claim credit on your invoices).

Frequently asked questions

₹1.5 crore for manufacturers, traders and restaurants (₹75 lakh in special category states), and ₹50 lakh for service providers.